Credit Linked Subsidy Scheme: All You Need To Know as a First-Time Homebuyers

In 2015, the Government of India launched a scheme to help the financially deprived population living in urban areas to get a roof over their heads - known as the Pradhan Mantri Awas Yojana.

Credit Linked Subsidy Scheme (CLSS) is a component of PMAY for Lower Income Group/Economically Weaker Section (EWS/LIG) and Middle Income Group (MIG – I &; II). Under this scheme, not only the economically weaker sections but also middle-income groups can avail a home loan at reduced EMIs.

Thus the government is offering a helping hand to those who are planning to buy a house amidst the current covid-19 crisis to encourage first-time home buyers.

At Shubham, our goal is that everyone should have their own home. We help you to fulfil your dream through the Pradhan Mantri Awas Yojana – Credit Linked Subsidy Scheme (PMAY-CLSS). Shubham Housing Finance helps beneficiaries to avail of this subsidy across the country.

An applicant can take advantage of a maximum interest subsidy of up to Rs. 2.67 lakhs. The central government offers an interest subsidy that is credited to the account of the qualifying beneficiary. Eventually, a beneficiary earning subsidy from Rs. 2.67 lakhs on a loan sum of Rs. 20 lakhs for a tenure of 20 years at an interest rate of 11% receive a home loan at an efficient rate of 8.79%.

The scheme is available to those who do not own a “pucca house” of their own anywhere in India. Second, the subsidized interest rates vary according to annual income, loan tenure, and loan amount.

A MIG I category can get an interest subsidy of Rs 4 per cent on an annual household income between Rs 6 lakh to 12 lakh. The subsidy is available for acquiring or constructing a house with a carpet area of up to 160 square meters. For MIG II, this limit is 200 sq.m. The home must have necessary infrastructures such as water, sanitation, sewerage, and access to road and electricity.

Those in the economically weaker section (EWS) and low-income group (LIG) categories can get a maximum subsidy of ₹2.67 lakh. In contrast, for MIG I and MIG II categories, the subsidy limit is ₹2.35 lakh and ₹2.30 lakh respectively.

You can calculate how much subsidy you are eligible for at http://www.pmaymis.gov.in.

The best part of the scheme is that this scheme is brought into action to make sure you become a homeowner on simple terms. If you want to avail a loan under the CLSS scheme, the procedure is relatively easy. All you need to do is fill the application form along with the related documents. 

 

The housing finance company shall approach the nodal agencies to begin the process of transferring the subsidy to your bank account that you are entitled to.

After that, the interest subsidy gets credited upfront to the borrower’s account, thereby reducing the outstanding loan amount and reducing the equated monthly installments (EMIs).

You can also track the application status at pmayuclap.gov.in. Typically, it takes three to six months for the subsidy to get credited to your account.

Conclusion:

This initiative by the government is playing a pivotal role in increasing the demand for housing in the affordable segment, encouraging more people to fulfill their aspirations of buying a home. According to the government, the extension of the CLSS for the MIG category until March next year is expected to benefit 2.5 lakh, middle-income families, in the current fiscal year.

Thus, it is a good step taken by the government to help the housing sector in coping with the COVID-19 crisis. The government should consider extending the CLSS until March 2024 for all the income categories.

If you have any more queries related to PMAY- CLSS scheme, you can write to us in the comment section below. You can also check the website Shubham Housing Finance to apply for the CLSS subsidy.

List Of Housing Finance Companies From Which You Can Easily Avail PMAY Benefits

The Pradhan Mantri Awas Yojana (PMAY) scheme is a government of India's flagship scheme that was launched in June 2015 to provide affordable housing to individuals falling under LIG and MIG.

 

With a mission of "Housing for All" in urban areas by the year 2022, the government provides a credit-linked subsidy to first-time homeowners on interest rates on their home loans. They are contributing about 1 lakh to 2.6 lakh for each home falling under the different vertical scheme.

 

Additionally, the government announced that the GST rate applicable on home loans would be reduced from 12% to 8% for those who apply for the loan under the Pradhan Mantri Awas Yojana schemes.

 

Take a quick look at the housing finance companies from which you can easily avail the PMAY benefits:

 

1. Shubham Housing finance:

The Pradhan Mantri Awas Yojana scheme caters mainly to the housing requirements of the urban poor. Shubham believes in the mission of Housing for All. A key growth driver of this initiative is Pradhan Mantri Awas Yojana - Credit Linked Subsidy Scheme (PMAY- CLSS). More than 10.5 lakh families have benefitted from this scheme.

 

Once you know you are eligible, you can avail a home loan from Shubham Housing Finance to finance the purchase of your first house and reduce your EMI burden with the help of PMAY.

 

2. Indiabulls Housing Finance:

Lakhs of homes have been constructed in 500 Indian cities and towns, since the launch of PMAY scheme

 

Indiabulls provides the affordable housing benefits of Pradhan Mantri Awas Yojana scheme through a credit-linked subsidy scheme known as CLSS. The maximum subsidy amount is calculated basis the minimum loan amount of 6 Rs. 6 lakhs for EWG/LIG customers, Rs 9 lakhs for MIG I & Rs 12 lakhs for MIG II customers with a loan tenure of 20 years.

 

You can also apply for loans at Indiabulls Housing Finance and enjoy the benefits of PMAY subsidy.

 

3. Aadhar Housing Finance

 

Adhaar empowers all the first time home buyers with a subsidy of up to 2.67 lakhs to own a house and build a house for their family. The beneficiary family should not own a pucca house in the name of any member of his/her family. Aadhar Housing finance allows you to own dream home and avail the PMAY interest subsidy.

 

4. Bajaj Finserv

PMAY has played a significant role in providing affordable housing. The purpose of this scheme is to offer interest subsidy for home purchases and by constructing affordable housing too.

 

Once you are eligible, you can then apply for a Home Loan under PMAY with lenders like Bajaj Finserv. This will allow you to avail of the benefits of the PMAY scheme along with the flexible terms of repayment, thereby adding affordability to your home purchase.

 

5. Art Housing Finance

 

For availing the subsidy under the Pradhan Mantri Awas Yojana, you have to apply for the home loans from NBFC or Housing Finance companies whichever you find best as per your requirement. After the approval of the Central Nodal Agency, the subsidy amount will be transferred directly to your bank account.

 

These are some of the best Housing Finance companies from which you avail the benefits of the PMAY Home Loan scheme. Do let us know in the comment section, if you want us to add anything more or if you have any queries.

Why Should You Opt For Shubham Home Improvement Loan?

Home Improvement Loan is a small portion of a loan that the house owner takes from lenders to renovate their house. It is a loan for those intending to upgrade or renovate their existing home. With the home improvement loans, an individual can upgrade their existing home into a contemporary and comfortable living space.

Shubham provides loan for various purposes such as the construction of a house, home renovation, home extension. These loans are similar to a home loan. While a home loan enables you to acquire a house, home improvement loans are meant for improving or renovating the home that you already own.

WHY SHOULD YOU OPT FOR A HOME IMPROVEMENT LOAN?

Though there are various ways in which you can fund your home renovation, Shubham's home improvement loans have a few advantages that make it attractive. Here's why:

LOWER INTEREST RATES:

While you may avail a personal loan for your home renovation, the interest on such a loan is much lower than that on a personal loan. So if you are planning to renovate your house opt for Shubham Home Improvement Loan.

TAX BENEFIT:

Shubham provides home improvement loan with lots of benefits than any other banks and fetches you a tax benefit on the interest component. 

MINIMAL DOCUMENTATION:

Home improvement loans require relatively simple documentation when compared to other modes of financing. All you need is necessary documentation like identity/income proof, photographs, property documents, etc. If you are an existing customer of the Shubham Housing Finance Company, then the documentation becomes much simpler.

QUICK PROCESSING:

Home improvement loans are processed quickly as the documentation is minimal and hassle-free. Therefore you can get your renovation work started at the earliest without waiting for long for your loan application to get approved. Read More...

Importance of Customer Service Training at Shubham

Customer Service is that the commitment to providing worth other services to external and internal customers, together with perspective information, technical support and quality of service in an exceedingly timely manner.

In today's competitive market scenario, it is important for a company to provide training and coaching to help its service staff understand the importance of offering the best service to each and every customer. We want to form a relationship with them and make an effort to get to know them better instead of just pushing a product.

Our relationship with every customer has the biggest impact on customer satisfaction. We believe in treating every customer as if they matter the most to us.

At Shubham, we have built the capacity to manage call center teams, as well as provide Customer Service Training to all our team members. The main motto of these training is to make our team understand the importance of providing excellent customer service.

As part of ongoing learning activity to improve Customer Service, Calls were investigated and based on the findings focused intervention was introduced to improve our core Customer Service function.

Shubham holds a flexible team-based approach to develop initial and refresher training courses to make our customer service team understand what customer service is and learn about professional customer interaction and communication.

We believe in providing the best Customer Service training to our team so that they can deliver great customer service by learning best practice strategies that increase their confidence during customer interactions.

Customer service is of vital importance to us, and our aim is to ensure that all our Customers should feel valued, wanted and loved. This is not just about getting a customer but it’s also about the relationship that we build with people who are an essential part of everything that we do.

As at Shubham housing development Finance, we believe in providing the best experiences to our customers and build a long term relationship with them.

Easy House Development and Finance Support

Investment strategies in the real estate sector are becoming popular in the recent times. However, these deals require hard work as there are lots of hassles that are involved while dealing with the real estate agents, lawyers and potential buyers. Above there is a need for huge amount of funds before finalizing on a real estate deal. Thus it is always better to a have good market survey prior to your property purchase.

Going on the fund side, there are many banks and house development and finance company companies that offer home loans which are easily availed. But to do a bit of market research is beneficial as it will keep you well informed about the changes that will you help in getting flexible loan terms and low interest rates. A good online research on home loan comparison would prove useful on deciding the best lender for you.

Today, the market is floated with a number of home loans that are offered both at fixed and floating interest rates. Fixed rate home loans are availed with a view of fixed interest rate over the loan tenure. If one opts for this category of home finance, then he need not worry about fluctuations in market interest rate. Fixed rate home loans are not dependent on the rise in interest rates. On the other hand, there are floating rate loans where the interest charged varies with the market interest rate. These loans are also known as variable or adjustable rate home loans which generally start with both low interest rate and low EMI. But with a rise in interest rate, your monthly payment-EMI- also rises.

Buying a home is what everybody aspires today and arranging funds for the same is not a difficult task but to get the best deal may be tough. The competition today is rising with an increase in the number of banks and housing financial companies. These institutions are offering loans that are convenient in repayment through various options of monthly installments. All of them make every effort to provide the borrower with the best service.

These organizations are also offering additional facility now-a-days. Even if you do not have a good credit history, you can opt for easy home loans like Pradhan Mantri Awas Yojna. So you need not fear about a loan being sanctioned due to your late payments, bankruptcy, discharge, etc. However, these loans are offered at higher interest rate to customer with bad credit history.

So one just needs to sit in front of a computer with internet and compare the rates and services provided by the different lenders in the market. You can just compare the various quotes and find out which one cost you less. This method is appropriate for people who dream to own a home. Online research facilitates you with various loan options and thereby helps in choosing the right option for you. So with high-speed internet access available with ease, searching for a home loan is no more a difficult task.

Pradhanmantri Awas Yojana Home Loan

If you are in search of a website which not only offers complete housing solutions but also helps you by guiding you at each and every step, Shubham is the place for you! We are one of the leading home loan providers in the country. Our aim is to extend our support to those who are outside the normal income circle. Everyone deserves to have a house of his own a place he can call his world and do whatever he wants and live the way he likes. We offer home loans at lowest interest so that people from all walks of life and benefit from them without worrying too much about their salaries and income.

In this article, we will primarily focus on one of the best initiatives by the government of India in the recent years- the Pradhan mantri awas yojna. This yojna mainly focuses on providing 20 million homes by the end of March 2022. The scheme is divided into two parts:

1. Pradhanmantri Awas Yojna (Urban) or PMAY-U: It provides homes to the poor people living in cities and other urban areas.

2. Pradhan Mantri Awas Yojna (Gramin) or PMAY-G: It focuses on providing houses to the poor people living in rural areas such as villages.

It is quite understandable that simply constructing a building does not make it a proper home. To make it sustainable, it must have access to proper light, water, drainage, etc. Therefore, this yojna is converged with several other schemes such as Saubhagya Yojana for electricity connection, toilet facilities, Ujjwala Yojana for LPG connection, proper drinking water, and Jan Dhan bank facilities. The economically weaker section which includes people with an income of fewer than 3 lakhs per year or the LIG section is benefitted from this scheme.

The rate of interest of home loan under the Pradhan mantri awas yojana is as less as 6.5%. You can avail a loan for a period of 15 years too. All the private and nationalized banks have high- interest rates for a home loan which makes it extremely difficult for a person with a meager salary to avail them. There are certain eligibility criteria that you must fulfill if you wish to apply for this scheme. For an instance, the applicant must belong to either EWS or LIG and he or she must not own a pucca house. Furthermore, women candidates are preferred and given more weightage. Also, if you are disabled or a senior citizen you can get the ground floor apartment for yourself.

There are thousands of people who wish to avail the benefits of this yojana but are unable to get them as they do not know where to go and how to begin. Now the problem is solved as ourwebsite, Shubham works exclusively for people who wish to apply for pradhan mantri awas yojana home loan. We provide the answer to all of your questions regarding this scheme. We dream of an India which has a home for every person irrespective of his financial and social status and we work tirelessly towards building this new India. Our modern loan programmes make it feasible for low-income families to avail them and use the money to achieve their wish of a beautiful home. Every person has the right to have a house and we have joined hands with all such initiatives brought by the Government of India which promise a home for every individual of our country.